A bad situation, likely to get worse. Many consumer households are facing financial hardship as a result of the coronavirus outbreak. Millions are now experiencing the realities of unemployment and millions more are likely to experience the same in the coming months. While some will receive relief in the form of unemployment insurance, in most cases it will not be enough to cover basic living expenses including mortgage payments. To lessen the blow to families, small businesses and the financial services industry in the US, Congress on 27 March passed the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). The implications for the mortgage industry are substantial. 2 COVID-19: Implications and next steps for lenders